Indian expats chew on Kerala's ‘fat tax’

For the first time, a fat tax has been introduced in an Indian state to discourage consumption of fast food and junk food like burgers and pizzas.

The new Finance Minister of Kerala, Thomas Issac, has introduced a “fat tax” on junk food sold through global and local fast food chains, some owned by non-resident Indians form the Gulf region.

Issac, an advocate of organic farming and healthy food, has said traditional food habits have been giving way to fast food culture, which is not good in the long run.

It is the first time that an Indian state has imposed this 'fat tax' on fattening foods - including tacos, burgers, pizza, pasta and doughnuts.

Fat tax is prevalent in a few European countries -- Fat tax or sugar tax is levied in Denmark, France, Hungary, UK and Finland on sugary drinks and confectioneries.

A Fat Tax of 14.5 per cent is aimed at discouraging consumption of junk food that can cause obesity and other health problems.

There are several multinational fast food chains that have opened shop in Kerala, targeting the upper middle class and the affluent families of non-resident Keralites, whose remittance is a driving force in encouraging consumerism.

Speaking to Emirates 24|7, a number of Non Resident Keralites here gave a mixed reaction to the fat tax proposal, which will affect them directly or indirectly.

“Introducing a fat tax is a welcome step because it will definitely reduce the consumption of junk food that causes obesity and other health problems.

"Many parents and children suffer from obesity and when they go home for vacation, they eat fast food. In our school, we are conducting special awareness campaigns to encourage healthy eating by students,” said Radhakrihnan Nair K R, Principal, Indian School Sharjah.

“Even in our school assembly we appeal to students not to eat fast food and parents are encouraged to send only healthy food to the school. We have group eating programmes occasionally to teach healthy eating habit for our students and the move is a welcome step,” he said.

A K Mansoor Managing Director, Al Bayan Group of Companies in Dubai who runs the fast food chain Chicking in the UAE and India, the idea of fat tax is biased, because the food served in ordinary restaurants too contains fat.

“We have 36 Chicking outlets in Kerala alone and most of our customers are middle class or NRIs. We sell burgers which contain chicken pieces, which are mainly protein, and vegetables like tomato and onion. Where is the fat content in them?

"All the major international branded fast food chains have opened business in Kerala and we are only one of them,” Mansoor said, adding that even the parottas sold in restaurants are highly fatty, as are carbonated soft drinks.

“There is fat in almost everything that we eat and the name fat tax is misleading,” he said, adding that the tax will be applicable only to branded fast food chains.

Satheesh Nair, Managing Director, Kolam Group of Restaurants, who runs a catering and vegetarian food business here and in India, said: “The introduction of fat tax is a welcome move because the arrival of big fast food chains started affecting ordinary restaurants there.

"Multinational fast food chains have vast resources and their turnover is also high. The fat tax will not only help smaller restaurants, but encourage healthy eating habit.

"Nowadays, a lot of people are interested in vegetarian food because they are more health conscious and skip junk food.

“In the UAE too, we serve healthy food in our restaurants as well as in major schools like Delhi Private School where managements insist on non-fatty and healthy food. In school canteens, junk food is not allowed here. My son does not eat chocolates or burgers fearing that something will happen to him, thanks to the awareness campaigns against junk food in the Sharjah schools,” he said.

“Taxing fatty food is a welcome step, but who will categorise what is fatty and junk food? My children were denied fat food in Dubai and now they are living in India. Even chips, tapioca, banana chips can also be termed junk food,” said Jose George, an Indian expatriate in Dubai.

“I think people, especially NRIs, will continue to eat fast food and junk food because they may not be worried about paying a few hundred rupees more. They are converting their foreign currency into rupees and hence won’t feel the pinch," said Maya Francis, an expatriate mother.

“When I buy a pizza or burger here I am not worried about spending say Dh100 for a meal. But when I go to my home country and spend Indian Rs2,000 for a meal, I feel embarrassed."

Follow Emirates 24|7 on Google News.